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Dorion-Gray Capital Management® Weekly Commentary June 13, 2016

| June 22, 2016
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THE MARKETS...

Stocks fell Friday for the second day in a row after oil prices dropped and concern about the global economy grew. Britain’s vote on June 23 whether to stay or leave the European Union weighed on investors. A recent poll indicated a majority of Brits favor leaving. For the week, the Dow rose 0.35 percent to close at 17,865.34. The S&P fell 0.11 percent to finish at 2,096.07, and the NASDAQ lost 0.97 percent, to end the week at 4,894.55.

No Wiggle Room –

Of 5,700 Americans surveyed, 46 percent do not have $400 set aside in cash to cover an emergency expense and would have to sell an asset or borrow the $400 to cover the expense (source: Federal Reserve, BTN Research).

I Have Two, You Have None –

There are 7.411 million Americans who work multiple jobs (i.e., two or more jobs) as of April 30, 2016. There are 7.920 million Americans who are unemployed and continue to seek employment as of April 30, 2016 (source: Department of Labor, BTN Research).

Not Much Inflation -

The Federal Reserve’s annual inflation target is 2 percent. Inflation, as measured by the Consumer Price Index, has failed to reach 2 percent on a trailing one-year basis 45 times in the past 48 months through April 30, 2016 (source: Department of Labor, BTN Research).

WEEKLY FOCUS – Could Your Children Be on the Hook?

Some retirees who don’t have long-term care insurance or adequate savings to cover an extended stay in a care facility might be jeopardizing their children’s future financial well-being. Twenty-nine states have archaic, filial responsibility laws on the books. Although rarely enforced, these laws can hold grown children responsible for impoverished parents’ financial support, and in some cases, medical and long-term care expenses. A small number of states even extend this responsibility to grandchildren.

The states that still have these little-known laws are: Alaska, Arkansas, California, Connecticut, Delaware, Georgia, Indiana, Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Mississippi, Montana, Nevada, New Hampshire, New Jersey, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Virginia and West Virginia.

Up to this point, most judgments holding children responsible for parents’ long-term care have been tied to fraudulently transferring a parent’s wealth to a child in order to qualify for Medicaid. However, there has been at least one case that held a child liable without any evidence of wrongdoing. In 2012, a Pennsylvania appeals court ordered an adult son to pay his mother’s $93,000 nursing home bill after she moved out of the country. The court based its decision on the state’s filial responsibility law and the son’s ability to pay.

As financial pressures mount from growing longevity, long-term care costs and government deficits, some observers wonder if more states and nursing homes will turn to these laws to recoup their losses. Of course, children can hire an attorney if that happens. Defenses include an inability to pay or parental neglect or abuse during the child’s youth. But sharing joint property or accounts can increase a child’s liability. And children should be extremely careful not to sign a care facility’s admittance contract that makes them responsible for unpaid bills.

We are committed to helping you protect yourself and your family against the financial risks associated with long-term care. Creating a comprehensive retirement plan includes planning ahead for all long-term care expenses. Call our office today to review your retirement plan and discuss the importance of planning for long-term care.

The Dorion-Gray Team

Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. a Registered Investment Advisory Firm. Dorion-Gray Retirement Planning is a trade name of Dorion-Gray Financial Services, Inc. located at 2602 IL Route 176, Crystal Lake, IL 60014. Dorion-Gray and the Securities America companies are separate, unaffiliated entities.

Diversification seeks to reduce the volatility of a portfolio by investing in a variety of asset classes. Neither asset allocation nor diversification guarantee against market loss or greater or more consistent returns.

© 2013. Dorion-Gray Financial Services, Inc.

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